Welcome to this week’s installment of “The Short Interest Report" - The Fly's weekly recap of short interest trends among some of the most widely followed high-short-float stocks. Using the data from our partner Ortex.com, which utilizes the latest information from stock lenders to estimate short interest changes for thousands of publicly traded companies, this report will screen for some of biggest changes in short interest as a percentage of free float and days-to-cover ratios while also considering the short interest data on some of the more volatile and heavier-traded names of the week. Based on the availability of data from Ortex, the report tracks the trading period that covers prior Friday through Thursday of this week. As a basis of comparison for stocks discussed below, the S&P 500 index was down 0.8%, the Russell 2000 index was up 2.1%, the Russell 1000 Growth ETF (IWF) was down 0.5%, and the Russell 1000 Value ETF (IWD) was down 0.3% in the period range.

SHORT INTEREST GAINERS

• After about three weeks of steady selling, shares of GameStop (GME) and other “meme” names are seeing more rangebound activity over the past week and a half, though shorts might be setting up for another leg down. Estimated short position in the stock is up two percentage points to 24.5% - an eight-week high – and also within a point of a 4-month high just north of 25%. In the five-day period ended Thursday, GameStop shares were still up 10.7%.
• One of Roundhill “MEME” ETF holdings, Carvana (CVNA) estimated short position and trading action follow those of GameStop, whereby the precipitous stock price decline may have fizzled last week, but the bears remained active. Shorts as a percentage of free float in Carvana was up three percentage points to 33.7% and days to cover was up 55bps to 1.60, though unlike GameStop, the stock was down 12.2% in the five-day period covered.
• Estimated short position in microcap Solo Brands (DTC), a newcomer to our screen this week, has spiked from 21.9% all the way to 367% - the highest level on record – before rounding out the week just high of 303%. The stock IPO-ed in October of last year at $17 per share but has now been reduced to a quarter of that price with another mixed earnings report last week and remains exposed to the pressure around e-commerce, post-pandemic decline in demand for outdoor activity accessories, and overall negative sentiment on new listings and retail space. In the five-day period ended Thursday, Solo Brands stock was down 14.5%.
• Dutch Bros (BROS) lost over a quarter of its value after a Q1 earnings miss and below-consensus guidance last week and yet the bears are pricing in an even bigger pullback in demand for its beverages and the impact of inflation. The estimated short position as a percentage of free float in the name increased in four of the five sessions last week, rising four percentage points to 30.7% - a two-month high. In the five-day period ended Thursday, Dutch Bros stock was up 7.5%, though the recovery from last week’s selloff is incremental.

SHORT INTEREST DECLINERS

• Estimated short interest in Gogo (GOGO) had reached one-year high last week above 40% but saw a significant decline to 29% this week, the lowest level in about nine months. Likewise, days-to-cover on the stock fell sharply to 1.2 from 16.6. While there hasn’t been much company specific news and volumes have stayed low, bears are clearly moving on from this high-flyer – Gogo shares are up 2.2% this week and over 30% year-to-date as the stock appears to have tapped in to recovery in business air travel and the relative safety of Telecom in the periods of pronounced market stress.
• After last week’s ten percentage point jump to a three-month high above 40%, the estimated short interest in microcap Blue Apron (APRN) was down three percentage points to 37.1%, with days to cover on the name also down about 20 basis points to 2.03. While the company announced the expansion of its menu offerings this week and forecast Q1 to be the high water mark in terms of quarterly spending earlier this month, the stock is down 7.8% in the five-day period covered as Blue Apron remains caught up in the downdraft of the Consumer Cyclical sell-off.
• Estimated short interest in Rite Aid (RAD) was down nearly three percentage points at 27.3%, a four-month low, while day-to-cover on the name declined over 50 basis points to 3.52. The key industry news this week was the CDC approval of a COVID vaccination booster in the 5-11 age group, though the impact of the development remains unclear as CDC data suggests that less than 30% of the population in that age range has completed the 2-dose series. In the five-day period ended Thursday, Rite Aid shares were up 5.0%, though the stock is still down over 60% year-to-date.